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What can we Expect for the rest of 2022?

 

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November 10, 2022

Good morning,

November and December are usually a slower time of year for real estate sales due to the holidays. However, with a recession looming, I expect sellers will likely keep their homes listed for sale in an effort to get ahead of a softening market. Despite a forecasted recession in 2023, there are still buyers looking for homes in our community, and cash buyers are not impacted by higher mortgage rates. 

 

For sale inventory remains low as potential sellers who want to stay in Emerald Bay have limited buying options and those with low interest rate mortgages don't want to rebuy if they are trading out to a significantly higher mortgage cost.  

 

If you have questions regarding the market, please reach out to me and always consider me your real estate resource. I hope you enjoy my latest newsletter!

 

Information + Updates

Did you know? The The National Association of Realtor (NAR) expects expects about 5.2 million homes to be sold in 2022, about a 15% decline from 2021. They expect fewer homes will likely be sold in 2023 — about 4.8 million homes. (NAR)

 

Did you know? During all of the last 6 recessions, mortgage interest rates dropped ....anywhere from 0.625% (2001) to 5% (1981). (Freddie Mac) 

 

Did you know? Forecasts for sales pricing of homes in 2023 vary considerably, anywhere from up 2.8% (Mortgage Bankers Association) to a drop of 4% (Zelman).

 

Did you know? The median rent in the USA has almost tripled since 1988. (Census)

 

Did you know? Around 80% of homebuilders are upping their buyer incentive offerings.

 

Did you know? The affordability of the typical new home sold in the U.S. nose-dived in September 2022. At an initial estimate of 43.6% for September 2022's median household income, the cost of owning a typical new home has never been higher for a typical American household. (Seeking Alpha)

 

Did you know? In the first half of 2022, the median price art collectors who were surveyed recently by UBS paid for art was $180,000, up from $164,000 in the same period in 2021. Before the pandemic, in 2019, the median price paid in the first half of the year was $100,000. (Talk about LUXE-flation....median price up 80% since 2019!!!!)

 

Did you know? A study published this month found the shift to standard time each fall results in a 16% jump in deer-vehicle crashes because of an abrupt increase in night-time driving. Researchers say a permanent move to daylight saving time (DST) could prevent nearly 37,000 of these collisions annually in the U.S. Can’t we do away with this already!!!!!

 

Did you know? Inflation is nothing new: Inflation is once again back in the headlines, but it has always been present, at lower rates. The purchasing power of the dollar has fallen about 50% every 18 years, on average, over the past 50 years. Another good reason to own real estate over the longterm? (CNBC)

 

Did you know? An analysis from the Urban Institute estimates that those who became homeowners between the ages of 25 and 34 accumulated $150,000 in median housing wealth by their early 60's. Meanwhile, those who waited until between the ages of 35 and 44 to buy netted $72,000 less in median housing wealth. (WSJ)

 

Did you know? Petroleum sales are transacted in US dollars. This originally came about through the Bretton Woods Agreement in 1944 which established an international monetary order whereby foreign currencies were pegged to the US dollar, backed by gold bullion. In 1971, the US terminated the convertibility of the U.S. dollar to gold bullion, effectively rendering the dollar a fiat currency. Additionally, the US dollar is predominately the standard currency used in global commodity market transactions. Why is this important? As the US raises interest rates, and the dollar strengthens against other currencies, it costs other countries more to settle dollar denominated transactions. 

 

Paris, Seville + Amsterdam

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I just travelled to Europe to meet my daughter Megan who is studying abroad for the semester. We explored the cities by foot (20K steps a day), enjoying amazing food, learning about the culture and the vast history of these countries and of course, shopped until we dropped….. Our favorite was Amsterdam!!!!! This was my first time there and while it suffers from a bad wrap due to the red light district, there is sooooo much history here that we learned.

 

Amsterdam:

  • Did you know that Amsterdam is almost 800 years old?
  • Did you know that Amsterdam was not bombed during Wold War I so much of the city remains the same?
  • Did you know the homes were build on stilts with tree trunks?
  • Did you know that Amesterdam is the foundation of modern capitalism. In 1602 Amsterdam had the first Public traded company named the Dutch East India Company
  • Did you know the number one crime in Amsterdam is tax evasion?
  • Did you know that most of Amsterdam is 6 feet below sea level as is most of the Netherlands?
  • Did you know that the Netherlands has a monarchy? King Willem-Alexander

Emerald Bay Market

 

16 homes have sold this year including 4 off market sales (2 of which I represented) which is a pretty solid number of sales considering the lack of inventory. The average days on market is approximately 40 which is relatively low by industry standards but certainly understandable since there has not been more than 4 homes on the market at ANY given time this year……

12 Month Lease

Winter Rental

For Lease

There are currently 2 active homes for sale in Emerald Bay

ranging in price from $6,995,000 to $7,495,000.

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Maura Short is known for her strong work ethic, broad industry know-how, and passion for architecture, in addition to her extensive network, confidentiality, and moral code. Combined with her wide-ranging local expertise, all of these assets result in favorable outcomes for both buyers and sellers under her care.
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